Angela Rayner Resigns in Tax Scandal as David Lammy Becomes UK Deputy Prime Minister

Sunday, September 07, 2025  Read time2 min

SAEDNEWS: Britain’s Labour government was thrown into fresh turmoil after Angela Rayner resigned as deputy prime minister over a property tax scandal, paving the way for Foreign Secretary David Lammy to take her place.

Angela Rayner Resigns in Tax Scandal as David Lammy Becomes UK Deputy Prime Minister

According to Saed News, Britain’s political landscape shifted dramatically on Friday after Deputy Prime Minister Angela Rayner resigned amid mounting pressure over a tax scandal involving one of her properties. Her departure has shaken the Labour Party, already struggling to maintain stability in the face of economic gloom and rising support for Nigel Farage’s Reform UK party.

Angela Rayner

Rayner admitted to underpaying stamp duty on a seaside flat, acknowledging that she failed to seek specialist tax advice despite repeated warnings. In her resignation letter to Prime Minister Keir Starmer, she said she did not meet the “highest standards” expected of senior ministers and took “full responsibility” for what she described as a serious error of judgment.

The scandal, which has dominated headlines for days, intensified after reports suggested Rayner had saved around £40,000 by restructuring her property holdings. Graffiti labeling her a “tax evader” appeared outside her second home in Hove, fueling public outrage and placing Starmer under immense pressure to act.

Starmer, who reluctantly accepted her resignation, expressed sadness at losing one of Labour’s most prominent figures. “You will remain a major figure in our party,” he wrote in reply, underscoring Rayner’s deep roots in Labour politics and her connection to the party’s working-class base.

Rayner’s departure prompted a rapid cabinet reshuffle. Foreign Secretary David Lammy was promoted to deputy prime minister while also taking on the justice brief. Yvette Cooper moved to replace Lammy at the Foreign Office, and Shabana Mahmood assumed Cooper’s role as home secretary. Meanwhile, senior figures such as Lucy Powell and Ian Murray confirmed they were leaving government after being told by Starmer they would be replaced.

David Lammy

The fallout highlights the precarious position of the Labour leadership, barely a year after winning power. Once seen as a potential successor to Starmer, Rayner’s downfall represents a major blow to Labour’s internal balance, particularly its ties to the party’s left. Her story — from teenage single mother to union representative and one of Britain’s highest offices — had long resonated with many voters who saw her as a symbol of social mobility and authenticity.

Yet the scandal’s complexity, noted by ethics chief Laurie Magnus, did little to shield her from public anger. While Magnus acknowledged Rayner had twice been advised that her tax arrangement might be permissible, he stressed that her failure to seek specialist advice meant she had fallen short of ministerial standards.

As the dust settles, analysts warn the resignation could deepen voter disillusionment with mainstream parties, already visible in Labour’s sliding poll numbers. Reform UK, led by Nigel Farage, has surged ahead by capitalizing on public frustration with political scandals, immigration, and economic stagnation.

For now, Lammy’s appointment provides a measure of continuity, but whether it can restore confidence in Starmer’s government remains uncertain. Rayner’s fall marks not just a personal tragedy but a pivotal moment for Labour as it faces mounting political headwinds.